Sinch AB (publ)
STO:SINCH
Sinch AB (publ)
Founded in the bustling tech scene of Stockholm, Sinch AB has grown into a formidable player in the cloud communications space. The company emerged from the idea that communication could be vastly improved through the seamless integration of technology with traditional messaging systems. Sinch enables businesses to incorporate voice, video, and messaging services into their existing operations by providing robust APIs and communications platforms. From multinational conglomerates to nimble startups, companies rely on Sinch’s solutions to enhance customer engagement, streamline communication processes, and adhere to the latest in data privacy regulations.
Sinch generates revenue by providing its innovative cloud-based communication services to businesses across various sectors, including retail, finance, and healthcare. By allowing businesses to reach their customers on mobile devices through SMS, email, and other messaging formats, Sinch capitalizes on the global shift towards mobile-first communication strategies. Additionally, Sinch earns through strategic acquisitions, continually expanding its suite of services and geographical reach to reinforce its market position and drive growth. Its focus on scalability and flexibility positions Sinch as a key player in the digital transformation journey of businesses, tapping into the lucrative market of customer communication management.
Founded in the bustling tech scene of Stockholm, Sinch AB has grown into a formidable player in the cloud communications space. The company emerged from the idea that communication could be vastly improved through the seamless integration of technology with traditional messaging systems. Sinch enables businesses to incorporate voice, video, and messaging services into their existing operations by providing robust APIs and communications platforms. From multinational conglomerates to nimble startups, companies rely on Sinch’s solutions to enhance customer engagement, streamline communication processes, and adhere to the latest in data privacy regulations.
Sinch generates revenue by providing its innovative cloud-based communication services to businesses across various sectors, including retail, finance, and healthcare. By allowing businesses to reach their customers on mobile devices through SMS, email, and other messaging formats, Sinch capitalizes on the global shift towards mobile-first communication strategies. Additionally, Sinch earns through strategic acquisitions, continually expanding its suite of services and geographical reach to reinforce its market position and drive growth. Its focus on scalability and flexibility positions Sinch as a key player in the digital transformation journey of businesses, tapping into the lucrative market of customer communication management.
Profitability: Sinch achieved record-high profitability in Q4 2025, with gross margin expanding to 35% and adjusted EBITDA margin reaching 14%, already meeting its 2027 target range.
Gross Profit Growth: Organic gross profit grew by 3% in Q4 (4% for the full year), led by strong performance in the Americas and API platform, partially offset by headwinds in EMEA and APAC.
Cash Generation: Cash conversion was strong at 84% in Q4, and the company generated SEK 1.5 billion in free cash flow over the past year.
Share Buybacks: Sinch has repurchased 8.8% of its outstanding shares and is seeking approval to cancel these shares, enabling further buybacks up to 10% until the 2026 AGM.
Growth Drivers: Next-generation messaging (notably RCS, up 260% YoY in volume), a diversified customer base, and partnerships—especially in the AI ecosystem—were highlighted as key growth engines.
Guidance: Management expects Q1 and Q2 2026 to continue recent growth trends; no new or worsening headwinds are anticipated, and the EBITDA margin target remains 12–14%.
Capital Allocation: The board intends to maintain flexibility between buybacks and M&A, with share buybacks currently prioritized unless acquisition opportunities become more attractive.
